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An inter-ministerial privatization commission meeting on Friday agreed
to appoint 2-3 advisors to examine the Greek stateās future moves in
the countryās banking system and to adopt a more efficient management
policy of the stateās real estate property.

Speaking to reporters, after the meeting, finance minister
Papaconstantinou said the advisors will evaluate the stateās equity
holdings in the Greek banking system, particularly in ATEbank and
TT-Hellenic Postbank before making their recommendations for a more
efficient exploitation of these holdings.

Economy Minister Katseli stressed that the government will ask its
advisors for a recommendation over a possible strengthening of the
stateās presence in banks, with alternative scenarios. Papaconstantinou
said the government was examining all possible moves over the issue
while he declined to comment on the results of Europe-wide stress tests
on banks, which were due to be released later in the day.

Papaconstantinou said a new inter-ministerial commission will be set up
- comprising ministry secretaries-general, the State Real Estate
Enterprise and the Tourism Development Enterprise- to resolve
institutional issues.

The National Bank of Greece on Friday announced the successful
completion of a Lower Tier II bond issue, worth 450 million euros,
through a private placement in Greece.

The bank said the issue was fully covered in a period of four working
days, a proof of investorsā confidence in the bank.

The bond security will be issued by NBG Finance Plc, a subsidiary based
in the UK, with the guarantee of National Bank and will be traded in
the Luxembourg Stock Exchange. The bond issue will have a maturity of
10 years.

National Bank said the proceeds from the bond issue will raise the
bankās equity capital and the bankās Core Tier I ratio by 34 basis
points.

Bank of Greece (BoG) governor George Provopoulos said Friday he is
optimistic on the economy, adding that the worst is behind us, during a
meeting with President of the Republic Karolos Papoulias.

"We have crossed the Rubicon," the central bank chief said, noting
satisfaction with the developments in the economy, indicatively citing
the improvement in performance regarding the state deficit and the
measures that have been taken to reduce expenditure and increase
revenue.

"This means that in the coming period we will likely have further
improvement," he said and, referring to recent governmental decisions,
spoke of "tough but necessary laws that indicate that things are
rolling in the structural field".

He also stressed that the "very negative image we had abroad is
beginning to turn positive", and anticipated that from autumn on "we
will have a substantially better image as it becomes established that
progress with the deficit is ongoing, and indeed constantly
improving".

Greece is meeting all its obligations under the Memorandum, and this
cultivates a positive picture, Provopoulos said, but conceded that this
will take time due to the prior negative projection.

"However, we have emerged from the Rubicon and this is very important
and hopeful," he added.

He also noted that the results of the Europe-wide "stress tests" for
banks are due to be released on Friday afternoon and the visit by
experts of the EU "troika" in the coming days.